Russian cryptocurrency miners illegally steal around $225,000 worth of electricity

Author: Tim Alper, cryptonews; Compiler: Songxue, Golden Finance

An illegal cryptocurrency miner in Russia caused "considerable damage" to the local power grid and stole about $225,000 worth of electricity, an electricity provider claims.

The miner allegedly siphoned electricity from the power grid in Yuzhno-Sakhalinsk, a region in the Sakhalin region (Russia's Far East), Russian legal publication Pravo reported.

Electricity provider Sakhalinenergo said its workers "discovered an illegally connected substation" on the premises of a "construction company".

The outlet noted that the miner caused “significant damage” to the provider’s network.

The electricity provider said the miner connected an unknown number of crypto mining equipment directly to the grid, which was installed in two container units.

The miner is alleged to have "illegally connected a substation with a capacity of 1,250 kVA" to the Sakhalinenergo grid.

The company noted that the total capacity of the equipment is "approximately 4 million kilowatts per hour."

The miner allegedly circumvented the metering system and failed to declare its operations.

But it appears that the miner managed to accumulate Bitcoin at that location over a considerable period of time without being detected.

The electricity provider said the mining facility will operate "from December 2021 to May 2022."

The police launched criminal proceedings against the miner.

The defendants are charged with "causing property damage of exceptional magnitude."

The property of the accused miners was confiscated.

**Russian energy companies fight back against illegal cryptocurrency miners? **

Illegal mining activity is on the rise in Russia, but power companies appear to be more wary of individuals trying to bypass meters and steal power from the local grid.

Royal Bank of Canada (RBC) reported last month that in cryptocurrency mining hotspot Irkutsk, power companies have uncovered 430 cases of alleged theft of electricity by illegal cryptocurrency miners.

The companies said they believe about $3.3 million worth of electricity was stolen by miners.

The media stated:

“Illegal cryptocurrency farms in the region are found in private homes, garages, balconies, basements of high-rise buildings, and even the attics of mental hospitals.”

In the Russian republic of Dagestan, RBC also reported in August that illegal miners reportedly stole "$234,000 worth" of electricity in the "first half of 2023."

There was a similar incident in Ukraine at the end of last year, and another incident in China in 2021.

Earlier this year, domestic experts claimed that Russia was becoming a "cryptocurrency mining hotspot."